Dual-listed Paladin Energy will enter into a proposal to restructure its balance sheet, which will reduce its debt obligations and extend the maturity of its debt. Paladin Energy said that in the absence of further progress with the potential sale of a 24% interest in Langer Heinrich uranium mine, the purpose of the restructuring is to address the upcoming maturity of its outstanding $212 million convertible bonds, which are due on 30 April 2017.
The company believes that the new balance sheet restructuring proposal represents a holistic solution that provides a stable and sustainable capital structure for the benefit of all stakeholders and a platform for future growth when the uranium market improves.
The uranium miner said in July 2016 that it plans to sell a portion of its interests in two of its projects to raise in excess of US$200 million.
As part of Paladin Energy's strategic initiatives process with regard to partnerships, strategic investment, funding and corporate transactions, the company proposed the sale of 24% of its Langer Heinrich mine in Namibia, as well as the potential sale of up to 75% of its Manyingee mine in Australia, to raise in excess of US$200 million.
Paladin Energy, who owns 75% of Langer Heinrich, signed a non-binding term sheet with an unknown major participant in the global nuclear power industry to sell 24% of its interest in the asset.
If the transaction proceeded on these terms, the sale would raise $175 million cash for the company and be accompanied by long-term arrangements for uranium off-take.
Paladin Energy said the parties were in the process of preparing definitive documentation for the formal execution of the sale. The deal was expected to close in the last quarter of 2016.